Understanding the importance of flexible tariffing
Flexible EV charging tariffs are a mighty tool in your arsenal that help you effectively monetize your network and provide a positive customer experience. With multi-parameter tariffs, you can set higher rates during peak hours and lower rates during off-peak hours, differentiate your offering on the market with unique pricing plans and address customer needs through tailored options. They also allow you to incentivize customers with discounts or rewards programs and comply with local regulations.
The 4 tariff elements
Understanding the components that make up an EV charging tariff will help you tailor them to align with your business goals and meet your customers’ needs.
1. Choose the right tariff
Different types of tariffs are available to customize your offering according to your customer’s needs and maximize profits through targeted pricing.
The range of tariff types includes:
Free tariffs offer unlimited charging without any duration or consumed energy limitations.
Flat rate tariffs charge a fixed price per session, regardless of how long the charging session lasts or how much energy is consumed.
Duration and energy
This tariff combines pricing based on the session duration and the amount of energy consumed.
Duration and energy time of day
These tariffs offer different pricing during different times of day, such as night and day tariffs.
Charging not allowed
This tariff is applied when you don’t want EV drivers to charge at specific EVSEs or during certain hours of the day. Restricting charging can help manage the load on the grid during peak demand and ensure sufficient power is available. It also comes in handy if you need to perform maintenance or upgrade your EV charging infrastructure.
Charge customers based on the consumed energy at different times of the day, which have varying electricity rates. You can set a fixed rate for the electric usage, which can be the same every day or different on different days of the week. With special pricing tariffs, you can offer unique pricing options for specific days, periods, or events. The granularity of the electricity rate can also be set, with options ranging from 15-minute to 1-hour intervals.
2. Tailor your tariffs to specific customers
Consider the customer segments you want to serve when setting EV charging tariffs. EV charging tariffs can be tailored to various user groups, including your registered users, users of your roaming partners (allowing your tariff to apply to any eMSP), and users of your B2B clients.
Registered users with an account are a natural starting point, but tariffs may also need to apply to ad-hoc users, such as tourists or visitors who are using your charging stations without prior registration. Tariffs may apply to specific user groups or be part of a subscription plan. Finally, the tariff may need to be location-specific, only applying to certain EVSEs depending on their location and available amenities. As there are many options available, it’s important to customize and set your EV charging tariff to suit the customers in each segment, helping you boost your bottom line.
3. The components that make up a multi-parameter tariff
Tariffs involve several parameters that must be taken into account when creating an EV charging rate plan.
One of the primary tariff elements is the connection fee, a fixed fee applied at the start of the charging session. To ensure that the connection fee is not applied to very short or low-energy sessions, charging station operators can set a minimum session duration or minimum session energy requirement.
The price per kWh or energy fee can be split into different price slots based on energy consumption. You can set a fixed price per kW and a flat fee (if applicable) for each slot. Additionally, you can set a duration fee based on the length of the charging session, which can also be split into time slots with a fixed price per billable unit and a flat fee (if applicable). To define the duration fee time period, operators can select a specific time interval, such as every 15 minutes.
Idle fees are another tariff element that can be set by the network operator when the EV is not charging during the session. You can set a fee per minute for the idle period and a grace period (in minutes) before the idle fee is applied. The grace period gives EV drivers a time period to remove their cars before the idle fee starts applying.
Additionally, operators can set a minimum price per session to ensure that each session generates a certain level of revenue. Finally, you can choose to pre-authorize a specific amount on the user’s payment card at the start of the session and stop the session when the pre-authorization amount falls below a set value. This helps to ensure that the EV driver has sufficient funds to pay for the session and can prevent issues with payment processing.
4. Determine when tariffs are applied
Charge point operators can use multiple tools and features to control when and how tariffs are applied. From start and end dates for specific tariffs to special pricing for certain days of the week or month, operators can employ different strategies to incentivize charging behaviors, balance demand during peak periods and offer users more cost-effective and flexible pricing options.
Grouping tariffs for advanced management and targeting
Grouping tariffs can provide advanced management and targeting for EV charging station operators. By arranging tariffs in order of importance or relevance to customers, you can ensure that the most attractive tariffs are applied first, increasing the likelihood of customer satisfaction and loyalty. In cases where a user is not eligible for a preferred tariff, operators can use fall-back logic to apply the next most appropriate tariff in order of importance.
You can use tariff grouping to create personalized and efficient charging experiences that target specific partners or EVSEs, allowing for tailored pricing structures that align with partner agreements or site-specific requirements.
Several EV charging use cases made possible with AMPECO’s flexible tariffs
Customers can choose between prepaid or postpaid payment options with a subscription plan. Postpaid subscriptions are especially useful in multi-unit residential charging scenarios. Charge point operators can assist housing associations looking to streamline EV charging payments with a postpaid subscription plan that includes a fixed base fee plus the sum of all charging fees for sessions for the month. This aligns with standard utility billing practices for residents and provides revenue predictability for HOAs. You could also run promotional campaigns, special offers, and discounts to boost your brand and build lasting relationships with your subscribed customers.
With user groups, you can maximize the monetization of your network by creating separate tariffs for different groups of users, such as VIPs, employees, customers, etc. Each group has its unique tariff with specific restrictions to their charging sessions. This allows you to differentiate pricing based on user priority for the same charging location or bill differently for public and private charging. For instance, in the workplace charging scenario, you could offer one tariff that applies to the general public, a reduced tariff for specific users such as your employees, and offer incentives to customers such as free charging under certain conditions.
Flexible tariffs allow you to adjust electricity rates based on different times of the day or week. This means you could set up a night and day tariff that charges different prices for energy consumption during these periods. You could also work with electricity rate providers like Octopus Energy to have the price of energy changed at equal intervals throughout the day. This way, your customers can benefit from lower rates during off-peak hours while still enjoying affordable pricing during peak hours. For instance, fleet operators can reap great benefits from flexible tariffs. By strategically planning their EV charging patterns, they can save money on energy bills while ensuring that their vehicles have enough power to operate when needed.
Amplify your revenue with AMPECO’s flexible EV charging tariffs
Understanding how to use flexible EV charging tariffs to your advantage is key to boosting profits and improving customers’ experience. AMPECO has extensive experience in tariff management, with 120+ clients operating in over 45 markets across the globe. Our expert team of EV charging specialists can consult you on how to approach this business-critical topic and guide you in setting up your specific business case. With the flexibility to adjust as needs change, you can rest assured that our EV charging management platform lets you cover multiple complex business use cases. Additionally, our flexible EV charging tariffs can be easily managed and controlled through our API, allowing for seamless integration into your existing systems and processes.
Contact us to learn more about how we can help you make the most of flexible EV charging tariffs.